Location: Cape May County, NJ | Metro: Cape May County, NJ HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,770 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,170 |
| 3 Bedrooms | $2,840 |
| 4 Bedrooms | $2,850 |
| 5 Bedrooms | $3,306 |
| 6 Bedrooms | $3,703 |
| 7 Bedrooms | $3,999 |
| 8 Bedrooms | $4,199 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,840 | $533,355 | 0.53% | F |
| 4BR | $2,850 | $657,618 | 0.43% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 08223 reveals a unique balance between yield potential and market stability, making it an intriguing area for real estate investment, particularly for those interested in Section 8 properties.
Yield: The Fair Market Rent (FMR) for ZIP 08223 in fiscal year 2024 is set at $1,860, which is notably higher than the average market rent of $1,656. This indicates a strong potential for rental income when leveraging Section 8 contracts. However, the median home value stands at $498,039, suggesting that property acquisition costs in this area are relatively high compared to the FMR. Despite this, the disparity between the FMR and market rent points towards a higher yield opportunity, especially if landlords can secure Section 8 tenants willing to pay the higher FMR rate.
Stability: The ZIP code shows a modest percentage of renters at 6.7%, which might initially seem low. However, the lack of data on days on market (DOM) and the average household income of $107,131 provide a mixed picture. The higher income levels suggest financial stability among residents, which could translate into reliable rental payments. Yet, without DOM data, it's challenging to assess how quickly properties can be rented out, a critical factor for cash flow stability.
Given these figures, ZIP 08223 leans toward a steady-cashflow zone. While the yield is promising due to the higher FMR compared to market rent, the stability indicators—such as the average income and the implied reliability of Section 8 tenants—suggest a less volatile environment. The modest rental population percentage does not necessarily detract from stability, as the income level supports a robust demand for housing, even if it's a smaller portion of the total population.
To conclude, the higher FMR of $1,860 versus the market rent of $1,656 provides a compelling reason to consider Section 8 properties in ZIP 08223. The average income of $107,131 supports the notion that there is sufficient financial backing among the population to maintain stable rental income. Although the exact dynamics of the rental market cannot be fully gauged without DOM data, the overall trend suggests a reliable investment option with decent cash flow potential.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.